Which of the following will cause net exports to rise?
a. A depreciation of the domestic currency
b. A fall in foreign income
c. Higher foreign tariffs on domestic goods
d. Inflation in domestic economy
e. A depreciation of the foreign currency
a
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Suppose the current price of a pound of steak is $12 per pound and the equilibrium price is $9 per pound. In this case, there is a
A) surplus, so the price falls and quantity supplied increases. B) surplus, so the price rises and quantity demanded increases. C) shortage, so the price rises and quantity demanded decreases. D) shortage, so the price falls and quantity demanded increases. E) surplus, so the price falls and quantity demanded increases.
In a monopolistically competitive scenario, the demand curve for an existing firm ____ when firms exit the industry
a. becomes more inelastic b. becomes vertical c. becomes horizontal d. becomes more elastic